BetaShares has launched the Global Aggregate Bond Currency Hedged ETF (WBND), broadening its range of core investment products. The new ETF tracks the Bloomberg Global Aggregate Index (AUD Hedged), offering Australian investors exposure to a diverse global fixed income market. BetaShares is an Australian investment management company offering exchange-traded funds (ETFs) and other investment solutions. They aim to provide investors with cost-effective access to a wide range of investment strategies.
The index comprises over 30,000 investment-grade bonds from more than 3,100 issuers across 70 countries and 25 currencies. It is also the official APRA performance benchmark for international fixed interest used by superannuation funds. The fund is currency-hedged into the Australian dollar, employing TOFA hedging to enhance after-tax outcomes and create more consistent distribution profiles for investors.
According to BetaShares chief executive Alex Vynokur, WBND is intended to serve as a core building block for Australian investors looking to gain exposure to global fixed income assets. The launch of this new ETF comes at a time of significant demand for fixed income ETFs in the Australian market.
Over the past year, the fixed income ETF sector has experienced substantial growth, attracting $9.9 billion in net flows. This reflects a growing appetite among Australian investors for diversified fixed income solutions, with products like WBND aiming to meet this demand by providing access to a broad range of global bonds while managing currency risk.